Mr Secretary General, Dear Sir,

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1 DECLARATION OF RESERVATION OF THE REPUBLIC OF ARGENTINA IN RELATION TO RESOLUTION A37-17/2 CONSOLIDATED DECLARATION OF THE PERMANENT POLICIES AND PRACTICES OF ICAO RELATED TO PROTECTION OF THE ENVIRONMENT CLIMATE CHANGE Mr Secretary General, Dear Sir, The Republic of Argentina recognises the critical importance of dealing with climate change and therefore recognises the need to make an effort to find ways and means to limit or reduce the impact of greenhouse gas emissions (GGE) from international civil aviation on the world s climate. The Republic of Argentina equally recognises the principles and provisions on common but separate responsibilities and respective capacities, and the fact that developed countries should take the initiative within the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC). It also recognises the principles of non-discrimination and equality, as well the equality of opportunities for the development of international civil aviation set out in the Chicago Agreement. The Republic of Argentina agrees to pursue a strategy consolidating efforts designed to achieve the world goals to which it aspires, with regard to the contribution of the international aviation sector in facing the worldwide challenge to solve the problem of greenhouse gas emissions (GGE). These goals should be based on an exhaustive examination of the best technology available, the best accepted operating practices and all other measures that help to reduce greenhouse gas emissions (GGE). During the 37 th Session of the ICAO Assembly, the Republic of Argentina adhered to the position of the Republic of Cuba, when it expressed its position with regard to climate change in study note A37-WP/271 (Revision 1), which was submitted on behalf of and with the express support of the 21 Member States of the Latin American Civil Aviation Commission (LACAC).

2 The Republic of Argentina is aware of the difficulties that arose during the 37 th Session of the ICAO Assembly, as well as at previous specialist meetings, in obtaining a general consensus that would fulfil the above-mentioned principles, and hopes that in the forthcoming discussions of the ICAO Council the necessary consensus is obtained, to which end the Representative Delegation of Argentina will try and support all the initiatives aimed at finding a common viable and satisfactory solution. On the basis of the above, and as a result of Resolution 17/2 Consolidated statement of continuing ICAO policies and practices related to environmental protection Climate change, the Republic of Argentina was able to note the different reservations made by several Member States and that their content did not reach the desired level of consensus; it therefore supports the Cuba Declaration (Appendix A), read on 8 October, 2010 at the Plenary Session of the Assembly, in which the reservation of the Republic of Argentina is based on paragraphs 6, 12, 14, 15 and 16 of Resolution A37-17/2, which we attach and which forms part of the text of this note. Also, as stated in the Cuba Declaration, it correlates to the Argentina Declaration (Appendix B), which was read on 8 October at the 8 th Session of the Executive Committee representing Argentina, Brazil, China, Cuba, India and Saudi Arabia, and a copy whereof is attached to this note. As stated in the above-mentioned declarations, we wish to point out that the aspects related to neutral carbon growth, the so-called MBMs and the de minimis exceptions are referred to the Council of the ICAO for its further report to the 38 th Assembly of ICAO. This information is sent so that the above-mentioned Reservation can be recorded in the document containing the Assembly Resolutions in Force (as of 8 October 2010) (Appendix A) and the text of the declarations mentioned in the Reports and Minutes of the 37 th Session of the Assembly (Executive Committee and Plenary). Thanking you for the attention given to our request, I take this opportunity to send my best wishes to you, Mr Secretary General. [signature] Jorge Andrés GELSO Representative of Argentina on the ICAO Council. Attachments: Appendices A and B

3 Appendix A Declaration of the Head of the Delegation of the Republic of Cuba made at the Plenary Session of the 37 th Assembly of the ICAO on Friday, 8 October, 2010 CUBA: Thank you very much, Mr Chairman As you know, Mr Chairman and distinguished delegates, our country has paid special attention to the subject of climate change. Cuba has supported and supports the leadership role of ICAO in focusing on the matter of international civil aviation emissions, and we set great store by its work and its management at the head of the informal working group. Many of our States here today are members of the United Nations Framework Convention on Climate Change and, as a result, we have obligations and rights to observe in this context. So, we recognise the great contribution that developed countries have historically made to the world s greenhouse gas emissions and, as a result, that protection of the environment, as it was considered then and now, must be carried out on the basis of fairness and according to the principle of common but differentiated responsibilities (CBDR) of the States. We have concluded that we have certainly taken significant steps since the Resolution approved at the 36 th Assembly, and although it is true that some points such as those shown in the Assembly related to the trade of emissions rights, and I mention that in that Resolution it was set out that the contracting States were urged not to introduce an emissions rights trade applicable to aircraft operators from other contracting States, except by means of mutual consent between those States, although it is true that this text does not appear in this draft Resolution, we still consider that advances have been made that we cannot lose. On this basis of the advances achieved, and taking into account that consensus on some of these aspects has been made difficult, we, the countries who put forward the proposal read by Argentina, including India, Saudi Arabia, Brazil, Cuba and other States, consider that we should have a certain flexibility so that, in fact, we do not lose what has been achieved so far, and we could continue working to this end.

4 We, the countries signing this Resolution, namely: Argentina, Brazil, China, Saudi Arabia, India, Cuba and others who have joined us, consider that we must make reservations with regard to paragraphs 6, 12, 14, 15 and 16 of the Resolution. So, we think that, in order to be able to reach a consensus and be able to move forward, we could express these reservations and they should be taken into account in the minutes, in the reports of this point on Agenda 17 at our Assembly and, once expressed, we propose to the Assembly that a resolution be made, a decision be taken, for the matters relating to neutral carbon growth, MBMs, the de minimis, the de minimis exceptions to be referred to the ICAO Council, for subsequent study as soon as possible, so that there can be a report to the 38 th Session of the Assembly for consideration. That is to say, once again, Mr Chairman, our position is that we would support the proposal arising from all the conversations and all the discussions we have held, for the reservations of the countries of Argentina, Brazil, China, Saudi Arabia, India and others that have joined us in this purpose, relating to paragraphs 6, 12, 14, 15 and 16 to appear in the report of point 17 of the Agenda of this Assembly. And that we should take the decision, on behalf of the Assembly, for the matters relating to neutral carbon growth, MBMs and the de minimis exceptions to be referred or transferred to the ICAO Council for subsequent study as soon as possible, in the shortest possible time, and for a report on this to be made to the 38 th Session of the Assembly for its consideration. On this basis, we could unite and support Resolution 17/2 as set out in WP/402. Thank you very much. T CUBA: Reservations relating to paragraphs 6, 12, 14, 15 and 16. And our proposal for the agreement to be taken by the Assembly, for the matters relating to neutral carbon growth, MBMs and the de minimis exception to be referred to the ICAO Council for further study as soon as possible and for its report on the advances in this respect to be made during the 38 th period of sessions of the Assembly.

5 Appendix B Declaration from the Head of the Delegation of the Republic of Argentina and Representative of Argentina on the ICAO Council., Mr Jorge A. Gelso, made at the eighth Plenary Session of the Executive Committee on Friday, 8 October, 2010, in the ICAO Assembly Hall Thank you, Mr Chairman, Several delegations of the States here today at this Assembly are not able to give our consent to the draft Assembly Resolution 17/2, and so we understand that WP/402 and its content cannot be adopted by this Executive Committee, and thus by the Plenary of the Assembly. I ask the Chairman of the Executive Committee to include in the minutes of the Executive Committee and the Assembly the following declaration, which I will read in English in consideration of the Delegations present who are signatories thereto.

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10 Reservation lodged by Australia to Resolution A37/17/2 on international aviation and climate change. Australia does not accept and will not be bound by paragraphs 6 and 15 of resolution 17/2 adopted by the 37 th Assembly on 8 October. Australia supports the implementation of the strategy endorsed by all ICAO member states participating at the High Level meeting (HLM-ENV) held in October HLM-ENV endorsed the Programme of Action developed by the Group on International Aviation and Climate Change (GIACC). An important element of the GIACC Programme of Action is that all states would contribute what they can in the efforts to address the impact of greenhouse gas emissions from international aviation operations on climate change, with states to choose the measures to adopt having regard to the particular circumstances. Paragraph 6 is inconsistent with the GIACC programme of action in that paragraph 6 subparagraph c) introduces a distinction between developed and developing states in relation to the expectations. While it can be expected that some states will be able to achieve more success than others in reducing or containing emissions from international aviation activities, the respective contributions should be determined by the circumstances of each state and its reasonable capacity to contribute, not by reference to a distinction between developed and developing states. Paragraph 15 of resolution 17/2 establishes an expectation that any carrier from a state whose international aviation sector accounts for less than 1% of total global traffic by revenue ton kilometres would be exempt from any market based measure established on a national, regional or global scale. This would exempt carriers from important aviation states, not just from states of lesser significance in international aviation. It would exempt carriers which are significant competitors on many international routes, leading to substantial market distortion and carbon leakage. The establishment of such a high threshold for a so called de minimis approach and any extension of the de minimis approach to the application of market-based measures has not been subjected to any real analysis and could undermine the effectiveness of the GIACC programme of action.

11 WRITTEN STATEMENT OF RESERVATION BY BELGIUM ON BEHALF OF THE EUROPEAN UNION (EU), ITS 27 MEMBER STATES, AND THE 17 OTHER STATES MEMBERS OF THE EUROPEAN CIVIL AVIATION CONFERENCE (ECAC) ON RESOLUTION A37-17/2: CONSOLIDATED STATEMENT OF CONTINUING ICAO POLICIES AND PRACTICES RELATED TO ENVIRONMENTAL PROTECTION CLIMATE CHANGE The European Union (EU), its 27 Member States, and the 17 other States members of the European Civil Aviation Conference (ECAC) support a comprehensive approach to reducing aviation emissions, encompassing progress on technology and standards, operational measures, and marketbased measures. We believe that it is necessary actively to pursue such a comprehensive approach since, as confirmed by the 4 th Assessment Report from the IPCC, none of these measures will have a sufficient impact on aviation emissions in isolation. The 44 European States welcome the adoption by the 37 th Assembly of Resolution A37-17/2, as a step forward from Resolution A36-22 which it supersedes and replaces. They note that there were also a number of key aspects where no consensus was reached. Furthermore, a large number of States indicated their intention to place reservations on parts of the Resolution. This highlights the challenges of taking forward discussions limiting the climate impacts of aviation at a global level. The 44 European States welcome the Resolution's recognition that it does not set a precedent for or prejudge the outcome of negotiations under the UNFCCC and its Kyoto Protocol nor represent the position of the Parties to the UNFCCC and its Kyoto Protocol. They also welcome the Resolution's recognition that some States may take more ambitious actions prior to Aviation is contributing to the EU's greenhouse gas reduction commitments through its inclusion in the EU-wide target to reduce emissions by 20% in 2020 from 1990 levels. From 1 January 2012, airlines' carbon dioxide emissions are included in the EU emissions trading system which will be applied by 30 European States. There are four areas of the Resolution on which European States have entered reservations, in relation to paragraphs 6, 14, 15 and 17. Even though the Resolution is not binding, the European states enter these reservations in order to fully clarify their position with regard to expectations for the UNFCCC climate negotiations to deliver ambitious targets for global greenhouse gas reductions and to ensure effective implementation of the EU Emissions Trading System (ETS). In relation to Paragraph 6, the European States believe that the collective "aspirational" goal which is formulated to apply from 2020 is insufficiently stringent. By 2020, global international aviation emissions are projected to be around 70% higher than 2005 levels, even with the 2% per year fuel efficiency improvement foreseen in the Resolution. Allowing aviation emissions to peak only in 2020 would result in ten years of considerable growth in emissions and

12 would not see aviation contributing adequately to attain the maximum 2 C temperature rise which requires global emissions to peak well in advance of Accordingly the European Union has consistently advocated that the global reduction target for greenhouse gas emissions from international aviation should be a 10% reduction by 2020 compared to 2005 levels. Europe remains committed to its more ambitious goals for net emission reductions from international aviation by In relation to the last 16 words of paragraph 6(c), European States do not consider that actions by some States prior to 2020 should offset growth in emissions from any particular group of States, in the sense of action by the former excusing a failure to take action by the latter. In relation to Paragraph 14 on market-based measures, the EU emphasises that the EU ETS allows it to take into account measures adopted by third countries in relation to incoming flights to the EU with a view to exempting them from the system. Such exemptions would follow consultations with these States, and the EU is ready to engage constructively in such consultations so as to reach agreement. It is important also to make clear that in no way can paragraph 14 be construed as requiring that market-based measures may only be implemented on the basis of mutual agreement between States. The Chicago Convention contains no provision which might be construed as imposing upon the Contracting Parties the obligation to obtain the consent of other Contracting Parties before applying the marketbased measures referred to in Resolution A37-17/2 to operators of other States in respect of air services to, from or within their territory. On the contrary, the Chicago Convention recognises expressly the right of each Contracting Party to apply on a non-discriminatory basis its own laws and regulations to aircraft of all States. In relation to Paragraphs 15 and 17 regarding de minimis provisions applicable to all market-based measures, including taxes and charges, the EU notes that its ETS contains de minimis provisions in relation to individual commercial aircraft operators that do not discriminate on the basis of nationality, an approach which Europe considers more appropriate and less prone to distort competition between carriers. The EU further notes that modification of the scope of these provisions would require an amendment of the EU s legislation. An exemption for operators from States below a de minimis threshold would also be problematic if it related to taxation. De minimis provisions of the sort envisaged in Paragraph 15 would potentially exempt airlines from well over 160 countries from the scope of all marketbased measures everywhere in the world, including in respect of flights within Europe. Such a provision would, if applied, increase market distortion and the risk of carbon leakage, in contradiction to paragraph (g) of the guiding principles listed in the Annex to Resolution A37-17/2. Accordingly Belgium, on behalf of the European Union (EU), its 27 Member States, and the 17 other States members of ECAC, hereby enters a formal reservation on paragraphs 6, 14, 15 and 17 of Resolution A37-17/2, and

13 requests that these reservations be formally recorded in the report and the minutes of the 37 th Session of the ICAO Assembly.

14 MISSION PERMANENTE DU CANADA AUPRÈS DE L'ORGANISATION DE L'AVIATION CIVILE INTERNATIONALE DOYEN DES MEMBRES DU CONSEIL PERMANENT MISSION OF CANADA TO THE INTERNATIONAL CIVIL AVIATION ORGANIZATION DEAN OF THE COUNCIL MEMBERS La Maison de l'oaci, 999, rue University, bureau 1535, Montréal (Qué bec) H3C 5J9 Téléphone / Telephone: (514) " La Maison de l'oaci'', 999 University Street, Suite 1535, Montreal, Quebec H3C 5J9 Facsimile / Télécopieur: (514) Montreal, November 18,2010 H.E. Mr. Raymond Benjamin Secretary General International Civil Aviation Organization «La Maison de l'dacl>> Suite ~. ~~~/ l have the honour to refer to A37-WP/402 presented to the last General Assembly by the working group established by the President of the Assembly. The working paper addresses the subject of c1imate change and contains Resolution 17/2. Attached is the statement made at the c10sing plenary of the 3i h Assembly by the head of the Canadian delegation, which should he considered as Canada's written confirmation ofits position with respect to A37-WP/4ü2. l avail myse1f ofthis opportunity to renew to Your Excellency the assurance ofmy highest consideration. Attach.

15 Canada's Statement of Reservation regarding Working Paper 402 (Resolution A37-17/2): Consolidated Statement of Continuing ICAO Policies and Practices Related to Environmental Protection - Climate Change Canada came to the Assembly very much with a view to continuing the good work of the HLM of 2009 and moving forward together, the premise ofmoving forward together is an important one for us as it is for ICAü, given the Chicago Convention principle of non discrimination and the nature of the international air industry. We support ICAü's role as the lead institution for civil aviation matters and believe this is the right forum for the discussion on c1imate change and international aviation. Progress on the international aviation c1imate change agenda was entrusted to ICAü by the UNFCCC and we must continue to advance this agenda. We believe that progress has been made, the issues that have been discussed in the Working Group established by the Chainnan are complex and difficult and many difficult compromises have been made by all States to find a package that we might accept. We have all made compromises in an effort to find a comprehensive approach that could be acceptable. The challenge for us is how we reconcile this package approach with the fact that numerous delegations have expressed concerns or reservations with respect to specifie paragraphs. We cannot simply remove some elements for further review and assume that the remaining text would be unchanged; this is not the basis on which the Working Group engaged in crafting WP/402 worked. Canada views several elements of WP/402 as positive advancements; we note the commitment to strive to achieve a collective medium tenn global aspirational goal of carbon neutral growth from We also note that this would be the first time that principles are identified to guide the design and implementation of MBM, and notable too is a commitment to accelerate work on technical and financial support to developing countries, technical transfer and capacity transfer.

16 However these positive elements are only part ofthe package and Canada has two specifie concems; we cannot accept 6C), that is the subparagraph under the medium term goals paragraph, this language appears problematic l believe to many States, and, for this reason we would recommend that the Assembly note this WP and the progress to date but we cannot support disaggregating sorne e1ements while others remain in active discussion. We would also make a reservation with respect to paragraph 15, which deals with an exemption from MBM for commercial aircraft operators of States below the de minimis threshold. A specifie de minimis threshold for States in MBM takes us weil beyond the broad principles that are contained in the annex ofthis Working Paper to a very specifie application. Accepting the clause will affect the form offuture MBMs. It seems to us that adoption ofthis is premature. The application ofa de minimis threshold to States under MBM was raised for the first time during the course ofthis Assembly, in our view this has meant too little time for the needed discussion and study to understand the implications ofthis approach given the complexities ofthe aviation industry and the risk and challenges resulting from potential market distortion and carbon leakage. Canadian carriers participate on many routes that involve States that would be captured by the de minimis threshold as proposed. l do look forward to Council debate on this subject to help inform our further thinking, but based on the above comments, we would recommend that the entire paper with any reservations and declarations be referred to Council for further deliberations.

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19 E. McCarthy Job No. E RUSSIAN FEDERATION Ref.: 435/10 Montreal, 18 October 2010 Sir, I send you herewith the text of the Statement of the Russian Federation regarding Resolution A37-17/22, made on 8 October 2010 during the plenary meeting of the 37 th Session of the ICAO Assembly. Accept, Sir, the assurances of my highest esteem. [sgd] A.A. Novgorodov Representative of the Russian Federation to ICAO Enclosure: 1 page Mr. Raymond Benjamin Secretary General

20 STATEMENT OF RESERVATION OF THE RUSSIAN FEDERATION REGARDING RESOLUTION A37-17/2: CONSOLIDATED STATEMENT OF CONTINUING ICAO POLICIES AND PRACTICES RELATED TO ENVIRONMENTAL PROTECTION CLIMATE CHANGE In view of the absence of an evident need to apply market-based measures prior to 2020 in the context of achieving the global aspirational goals on CO 2 emissions reduction, the Russian Federation urges Contracting States to refrain from the unilateral application of market-based measures. Considering that the non-discrimination principle was deleted from the text of the Resolution and also that the Resolution, as submitted to the Assembly for approval, tolerates carbon leakage and market distortions, the Russian Federation does not rule out the introduction of adequate retaliatory measures by other Contracting States in respect of the operators of Contracting States which introduce market-based measures unilaterally. The Russian Federation will also refrain from applying the de minimus principle (operative clauses 12 and 15 of the Resolution) until ICAO completes the development of the agreed concept of the application of that principle.

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